So, you want to franchise your business, you know your brand and system can definitely work for others, and you have decided to franchise. What’s next or, more importantly, what factors should you be considering as you take the next step toward the franchised expansion of your business?
From my perspective – as a franchise lawyer and as a franchisor myself – the things that should matter to you the most right now should include:
- The Right Perspective – On many occasions, I have discussed why franchising is flexible and scalable and can serve your desire to expand, whether locally, regionally, nationally or all of the above. So, right now you need to get the right perspective and you need to evaluate what your goals are and will be at the time of launching your franchise and the months, year and years after that. You need to begin with the end in mind and just having a goal of “franchising your business and being able to start selling franchises” is not enough.
- Capitalization – Continuing with the ‘franchising is flexible’ point of view (actually this is a reality if you approach franchising the right way) you need to understand your capital requirements. That is, what will be the cost to launch your franchise, i.e., legal and consulting costs associated with planning out and launching your franchise? We have programs and specific fixed fee programs, but what will be right for you will really depend on Point 1 – your perspective and goals. Either way, when dealing with franchise development, always insist on a fixed fee program.
- The Execution – There are many paths to franchising your business and this means that there is the correct and proven path and then there is the wrong path. The scary thing is, if you follow the wrong path you probably wont even know it. So, who you trust with franchising your business is critical. Work with a professional team that understands your goals, has experience, and a positive track record among their other clients.
Your ultimate goal should be to plan out and launch a franchise system that suits your goals and the unique aspects of your business.